Visitors meandering through downtown Fayetteville over the last two years may have noticed a “coming soon” sign announcing a new location of the Moore County-based Southern Pines Brewing Company.
The brewing company’s owner Micah Niebauer purchased the location at 123 Hay Street in December 2021, according to county property records, with the intent to open a new taproom similar to the company’s location in downtown Southern Pines. Three and a half years later, The Traveler, which sells the local brewery’s beer and craft cocktails, opened its doors on Hay Street, in late June. A grand opening is scheduled for Aug. 22.
At the same time, Niebauer and his companies are defendants in a lawsuit that alleges they owe a combined $2.6 million to First-Citizens Bank & Trust Company. Court records show First-Citizens is now attempting to foreclose on the Hay Street property. The bank is seeking it as collateral for $1.78 million it claims 123 Hay Street Fayetteville LLC, the company Niebauer purchased the bar under, owes for a deed of trust on the Fayetteville property. The foreclosure notice, filed on Aug. 8, states that 123 Hay Street is in default for not paying monthly installments, and the bank has expedited collection of the debt because of the default.
A hearing on the foreclosure is scheduled for Sept. 8 at the Cumberland County Courthouse — less than three weeks after the grand opening, which Niebauer confirmed is still happening. In an interview, he declined to comment on the foreclosure to CityView.
Lawsuit alleges company owes millions
The loan associated with the foreclosure is included in a separate legal case, a lawsuit filed by First-Citizens in the Cumberland County Superior Court on July 23. That complaint alleges Southern Pines Brewing Co., 123 Hay Street, Niebauer and his wife Patricia Niebauer, and several other LLCs managed by the Niebauers — Crftd, Crftd Properties, Crftd Property Management — owe a combined $2.6 million for various loans from the bank from 2019 and 2024.
Niebauer also declined to comment on this lawsuit, and referred CityView to his statement in The Pilot, a Moore County newspaper.
“In response to the unfortunate news about the lawsuit, I want to state that I remain committed to the mission of Southern Pines Brewing Company, that we exist to create and foster community,” Niebauer said in the statement. “After leaving the military back in 2014 with two teammates to found this company and eventually growing it into a multi-location, multi-state business, it has been my passion for community that has been my north star. While I can’t address the ongoing legal matters we face, I am actively in the process of looking for the right strategic partners to come alongside us and help us continue our mission.”
The complaint repeatedly states that all notes are “past due and in default.” First-Citizens is seeking relief in the form of the balance of the unpaid loans, as well as additional interest per day since June 23, and compensation for attorneys’ fees, the lawsuit states.
According to the complaint, Southern Pines Brewing Co. owes First-Citizens $557,921 on five loans and a credit card account. First-Citizens further alleges 123 Hay Street owes over $2 million on two loans associated with the Hay Street property: a $1.78 million loan issued to 123 Hay Street in December 2021 for the deed of trust and a $255,000 loan issued in March 2024. The unpaid balance, including accruing interest on the loans, is a little over $2 million, according to the complaint.
In two demand letters sent to the Niebauers on May 27 and included in the court documents, attorneys for First-Citizens gave notice of default on both sets of loans, stating that First-Citizens will “accelerate the loans and demand payment in full” if the outstanding balances are not paid by June 20.
First-Citizens alleges that, despite receiving these notices, the defendants “failed and refused to pay the outstanding balance” on the loans. “First-Citizens has been financially damaged,” the complaint continues.
When asked again by CityView about the foreclosure and lawsuit, Niebauer did not address it directly, but instead expressed excitement about the Fayetteville location.
“We’re here to create and foster a community as a company,” Niebauer said. “And we’re really excited about the Fayetteville market and continuing our mission and partnering with people that support that. So we’ve had a long, long history in this community.
“We would love for people to come and that’s really about all I have to say.”
Government accountability reporter Evey Weisblat can be reached at eweisblat@cityviewnc.com or 216-527-3608.
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